GST is the biggest tax reformation which happens after independence. The government of India has taken the revolutionary step for making India more stronger in the economic sector.
GST is nothing but is the new way of paying tax. The GST mode is very simple as compared with the earlier system of tax payment.
Full Form Of GST
Goods and service tax is the full form of GST. The main motive of the GST implementation is to change the previous tax system which was very complicated in the understanding of common people.
The consumer was used to pay some taxes such as VAT (Value added tax), entertainment tax, service tax and many more. But now, all the tax is replaced by the one tax, i.e. GST.
Formation Of GST
With the composition of three taxes, the GST is formed. Those taxes are CGST, SGST, and IGST. The above GST is determined by the movement of Intrastate or Interstate movement.
In India, every state has its own rules and regulation due to this the growth of the country slower down and create a problem in business deals and also gives air to corruption.
The Advantage Of GST
As GST is simple tax payment, now the ordinary people won’t be getting confused while purchasing the product. It was the government agenda that as it is one nation, the citizen of the same as to pay only one tax.
The business environment gets developed and also make the scope vast turning it into flexible nature as the business person and the manufacturer of the product as to pay less tax which leads for the betterment of the nation.
The standard for the global business is achieved through GST. Many developed countries like Germany, Switzerland, Japan and many more as switched themselves to the one window for paying tax i.e. GST.
The Cascading effect was removed as soon as the GST was imposed. Now Cascading is nothing but, it is the tax which is imposed on the tax.
The Disadvantage Of GST
As everything as the brighter as well as the darker side, in the same way, there is some ill effect of the GST.
It takes a long time for an ordinary person to understand the whole processes or system of GST. All the software like business software and accounts software to install the latest tax payment system i.e. GST by removing the previous software.
Some of the services become costlier due to the imposition of GST on them such as Telecom, Insurance, Banking, Airlines, and many others. Also, the CA services will cost much money even to the small business.
Many people face the issue in filling tax, a serious identity stolen case can happen with anyone.
As the GST as bot the sides, positive as well as negative but every human being should take up the change with positive expectation.
Everyone has to wait for the better result of GST, surely it would be beneficial for all.
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